Environmental laws will continue to be the strongest force in the industry, reducing demand for some fluorine-based products while creating demand for products such as newer fluorocarbons.

World demand to rise 3.8% annually through 2018

Global demand growth for fluorochemicals is forecast to accelerate, rising 3.8 percent per year to 3.8 million metric tons in 2018. Above average growth in higher value products will help drive increases in value demand more than seven percent annually to $25 billion. Environmental regulations will continue to be the strongest force acting on the industry, shaping demand in both positive and negative ways. While regulations and consumer concerns have reduced demand for some fluorine-based products, particularly ozone-depleting fluorocarbons, they have also opened up opportunities for products such as newer fluorocarbons with low global warming potential. Improved fuel economy and reduced emissions in the motor vehicle industry will indirectly benefit demand for a variety of inorganic and specialty fluorochemicals (e.g., aluminum fluoride and lithium hexafluorophosphate) and for fluoropolymers.

Fluorocarbons to remain most dynamic sector

The fluorocarbons market remains the most dynamic sector of the fluorochemical industry for two reasons: first, the evolving regulations aimed at protecting the ozone layer and reducing global warming, and, second, a sharp contrast in the outlook between developed and developing countries. In developed countries, the phaseout of HCFCs is nearly complete, with most end users switching to HFCs. However, even HFCs now face restrictions due to their global warming potential, with new laws in developed countries expected to limit future demand. While competition from non-fluorine gases is growing, reductions in HFCs are providing growth opportunities for newer fluorocarbons such as HFOs, which offer good performance and an excellent environmental profile. Nevertheless, demand for fluorocarbons overall in the developed world will continue to decline in volume terms. In the developing world, however, demand for fluorocarbons will register strong gains due to a combination of increasing industrialization, higher personal incomes, and a relative lack of environmental regulation.

Advanced materials to drive fluoropolymers market

Lower-volume fluoropolymers account for a disproportionate share of market value due to their higher average prices. Growth in fluoropolymer demand will be driven by expanding opportunities for high-performance materials in a variety of industries, notably motor vehicles, coatings, and electronics, especially in developing parts of the world where their intensity of use remains low. In the electronics sector, demand for polymers and specialty chemicals will remain strong in the flat panel display market, but future growth will be driven by a rapid increase in production of lithium-ion batteries for automotive applications.

Study coverage

This Freedonia industry study,
World Fluorochemicals, is priced at $6300. The study presents historical demand data for 2003, 2008 and 2013, and forecasts for 2018 and 2023 by product (e.g., inorganics and specialties, fluorocarbons, fluoropolymers), market (e.g., refrigerants, aluminum production, blowing agents), world region, and for 15 countries.